CBDT has issued Notification 9/2012 dated Feb 17,2012 which will come as a big relief for employees.
Exemption from filing IT Return
- Exemption is available for employees having income from
- Interest from Saving Bank Account upto Rs. 10,000
- Exemption is available if Total Income does not exceed Rs. 5 Lacs ( Total Income means Gross Total Income Less Deductions under Chapter VI A)
This exemption is not blanket and the following conditions must be fulfilled before this exemption is available
- Employee must report his PAN to employer
- Employee must report his income from interest on savings bank account to employer
- Employee has received Form 16 from his employer
- Total tax liability of employee has bee paid off by employer by way of TDS and employer has deposited TDS with central government
- Employee has no refund claim
- Employee has received salary only from one employer
- Employee has not received any Notice from income tax department for filing of income-tax return
- Though welcome step, it might not benefit many employees.
- Most of the employees have investment in Fixed Deposits, Debentures, Post Office Saving Schemes and they will earn some interest from these investments. Such employees are not exempt from filing IT Return.
- Again ,several employees take home loan and submit details of interest on home loan to employers, who factor it while deducting TDS. Such employees are also not exempt from filing IT return as the interest paid on home loan has to be shown under “Income from house property”
- Any employee who has earned short term or long term capital gains will also not be exempt from filing IT return